Nvidia, a US-based Multinational Technology Company and the inventor of GPU to support playing games and multimedia, has recently announced the development of its ‘Grace’ Server Processor Chips to take on the Intel market. The company plan to release the chip by 2023.
An Insight Into Background of Nvidia
Nvidia, a GPU manufacturing company to support gamers, was founded in 1993 and is based in Santa Clara, California. Its primary focus area is designing GPU or the Graphics Processing Units for the professionals and gaming market. Even its chips are famous among the automotive and mobile computing market too. Nvidia’s chips were traditionally used as an accelerator along with the central processors from Intel.
On Monday, April 12, 2021, Nvidia stated that we would design the server chip based on the United Kingdom’s Arm technology. It will put the company in direct competition with the rival Intel. Moreover, this recent announcement by Nvidia has added complexity to the antitrust review regarding Nvidia’s $40 billion contracts to purchase the ARM.
Challenge Posed To Intel In Chip’s Market
Intel is one of the largest makers of the Central Processing Unit or CPU for the Data Center Servers of varied companies, but it has witnessed tough competition from the ARM-based chips. With the development of the ‘Grace Server Processor’, the GPU maker Nvidia will be the biggest chip designing company to challenge central processer maker Intel.
Being a graphics chips company, Nvidia has given a new edge to the gaming and graphics market. Many people even use GPU technology for game streaming too. People who are fond of playing online games or gambling can switch to these processors. One can play games at NetBet casino using their PC or mobile devices, as it has a mobile casino.
Another challenge that Intel faced after this announcement from Nvidia was that its shares dropped by 4% during the mid-day trading, but Nvidia’s shares rose to 2.6%. Even a new report states that Nvidia’s worth is now more than Intel that accounts for $251 billion, and this increase came after the last year that made the company’s share value increase by over 70%.
Talking about its new Grace Server Processor Chip, Nvidia indicates it will be designed and developed on the ARM or Advanced RISC Machines architecture. Moreover, it will enhance their reach into the data center ectem too. Although the company is yet to adopt this technology from a British firm the company has already begun its process. The company claims that this ‘Grace-based system’ will deliver 10x faster performance than their current server processor chips. Nvidia states that it will be an edge over the ‘x86 architecture’ developed by their rival Intel.
Intel is one of the biggest makers of central processors for data center servers. But, the company has faced competition from the Arm-based chips too.
Present Scenario Of The Server Market
With its announcement, Nvidia has presently clinched the largest share in the processor market. Moreover, ARM’s technology is not done for the first time, but it is also used in the chips of most smartphones and in last few years, these chips are used widely in the data centers. Even top-notch companies like Ampere Computing and Amazon.com are designing the chips for the servers using the ARM’s technology.
With Nvidia’s entry into this market, the access of ARM’s architecture will accelerate into the data centers. By making this central processor using this architecture, Nvidia will be taking on Advanced Micro Devices and Intel right away for the first time. However, Nvidia’s spokesperson did not disclose the type of ARM’s technology they will be using but stated that they would be using the computing cores from the ARM’s ‘Neoverse’ family.
